At its first monetary policy meeting of 2021 on February 2, the Reserve Bank of Australia (RBA) board members decided to maintain the official cash rate (OCR) at a record low of 0.10%, matching the market’s consensus. The RBA left its three-year bond yield target unchanged at 0.10%.

It has also decided to purchase an additional $100bn worth of government bonds as the additional monetary support is set to expire in April. The additional buying will be in the form of $5bn per week.

RBA Governor Philip Lowe said a return to normal economic measures are “still some way off”, with the central bank to continue its support for the foreseeable future.

“The current monetary policy settings are continuing to help the economy by lowering financing costs for borrowers, contributing to a lower exchange rate than otherwise, supporting the supply of credit needed for the recovery and supporting household and business balance sheets,” Dr Lowe said.

“The decision to extend the bond purchase program will ensure a continuation of this monetary support.” “The outlook for the global economy has improved over recent months due to the development of vaccines,” RBA Governor Philip Lowe said.

On the other hand, Earlier in the day beginning , market sentiment was disturbed initially as an increase in margin requirements for silver trading the Gamestop’s weakness stopped bulls from cheering Wall Street’s upbeat performance. However, US President Joe Biden’s “substantive and productive” stimulus discussions with Republicans renewed optimism. Also on the positive side could be China’s readiness to give a fresh start to the diplomatic relations with the US, as per Senior Chinese diplomat Yang Jiechi.

AUD/USD 4 Hour Chart:

Support: 0.7596 (S1), 0.7572 (S2), 0.7539 (S3).

Resistance: 0.7652 (R1), 0.7686 (R2), 0.7709 (R3).

Amidst all the catalysts favoring greenback against Aussie, we expect a bearish trend for AUD/USD.